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AB Ltd.'s gross purchases were $20,000, net purchases account for an average 10% discount on all items purchased and 5% of items were returned due to wrong specifications during the year. Also during the year the net sales were $18,425.
Required 1: If beginning and ending inventory are zero (Just in time), AB's cost of good solf for the period must have been: $
Required 2: AB's Purchase Return and Allowances for the period must have been: $
Required 3: AB's Purchase Discounts for the period must have been: $
Required 4: AB's Net Puchases for the period must have been: $
Required 5: AB's Gross Profit on Sales in dollars for the period must have been: $
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